1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Margarita [4]
3 years ago
15

"Choate International plans to issue $15 million in 10-year bonds. They believe they can afford to pay $1,150,000 in interest to

bondholders each year. Which annual interest rate should they use for their bonds?
Business
1 answer:
Rudiy273 years ago
4 0

Answer:

They should use interest rate of 7.7%

Explanation:

The rate (let's call it r) should be that the annual interest of the $15,000,000 that they borrow through isssuing bond is $1,150,000

Then 15*10^6 * r = 1,150,000 => r = (1.15*10^6)/(15*10^6) = 0.077 or 7.7%

<u>Note:</u> $1,150,000 is the annual amount they could set aside for paying interest, so they should use 7.7%. If it's lower than what market requires they will have to sell the bond at a discount. If it's higher than is required they the bond would be bought at a higher price than par-value.

You might be interested in
Companies at the fourth stage of developing their global business
serious [3.7K]

Answer:

what's the question here?

in what context pf the 4th stage are you referring to

5 0
3 years ago
When outcomes are uncertain, managers need to Group of answer choices describe the risks involved. evaluate the risks involved.
Alenkasestr [34]

Answer:

all of the above

Explanation:

When outcomes are uncertain, a manger must recognise and describe the risks involved. After identifying the risks, the risks must be evaluated to determine the extent of the risk and how the risk would affect the business. After the risks have been evaluated, the risk should be managed. For example, by taking insurance.

For example, if a manager wants to purchase a machine,

the manger has to identify the risks involved : the machine can be stolen, it can injure workers or it might not produce the desired effect

The manger must then evaluate the risks. The risks can be evaluated using capital budgeting methods. e.g. NPV

The manger can manage the risk by taking out insurance

3 0
3 years ago
A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm’s total co
bagirrra123 [75]

Answer:

A) Q=17

B) $80

C) 518

Explanation:

C(Q) = 60 + 12Q + 2Q2

and its MC = 12+ 4Q

a.How much output should the firm produce in the short run?

Put P = MC and solve for Q

P=MC

80=12+4Q

4Q=68

Divide both sides of the equation by 4

Q=17

b.What price should the firm charge in the short-run? $80

c.What are the firm’s short-run profits?

Hint:

Profit=Total Revenue-Total CostTotal Revenue=$80x17=1360

TotalCost=60+12x17+2(17)2=60+204+578=842

Profit=1360-842=518

6 0
3 years ago
Walmart company own which stores and brands
avanturin [10]
Sam West wal-mart de mexico asda stores and walmart japan holdings
5 0
3 years ago
while the supply of major film stars is small and relatively fixed in the short run, the demand for the average doctor or nurse
antiseptic1488 [7]

False, while the supply of major film stars is small and relatively fixed in the short run, the demand for the average doctor or nurse is quite large globally. By stating that the marginal benefit of services provided by doctors and nurses is considerably lower than the marginal benefit of services provided by major film stars, the diamond-water paradox is illustrated. This suggests that while there is a greater demand than there is for major film stars, there is a greater supply of doctors and nurses.

The marginal utility that major movie stars provide to moviegoers is greater than the marginal utility that patients receive from doctors and nurses. This is due to the fact that people who use the services of well-known actors and actresses are more willing to pay for them than people who use the services of physicians and nurses. Though a person's health is more important to their quality of life than movies, consumers value movies more for their utility than their health, especially once they have achieved a basic level of sound health. This actually explains the "diamond water paradox," in which consumers are willing to pay more for valuable diamonds than they are for the water that sustains life. In plain English, people are more willing to value the satisfaction they get from watching one more movie than they are from receiving more medical attention. That implies that people only give basic healthcare needs a thought.

Note that the full question is:

Movie stars such as Salma Hayek, Samuel L. Jackson, Dwayne Johnson, and Jennifer Lawrence are paid millions of dollars per movie, which can take as much as 6 months of full-time work for an actor. By contrast, doctors and nurses earn considerably less over the same time period. Why might this be? While the supply of (major film stars OR doctors and nurses) is small and relatively fixed in the short run, the demand for (the average doctor or nurse OR movies featuring these film stars) is quite large globally. By contrast, the marginal benefit of the services provided by (major film stars OR doctors and nurses) is relatively low, although the total benefit is quite high. This illustrates the diamond-water paradox. True or False

Learn more about marginal utility brainly.com/question/15050855

#SPJ4

4 0
1 year ago
Other questions:
  • Expected volume of production ​50,000 units Actual volume of production ​47,500 units Budgeted fixed overhead​ costs(for 50,000
    9·1 answer
  • Jordan is a sales officer who has been underperforming over the last three months. At the last monthly operations cycle meeting,
    7·1 answer
  • Use the following information to determine this company's cash flows from financing activities.a. Net income was $466,000. b. Is
    6·1 answer
  • Starset, Inc., has a target debt-equity ratio of 1.15. Its WACC is 8.6 percent, and the tax rate is 21 percent.
    13·1 answer
  • Select three of the following that are listed as sensitive sites in the location and transportation (LT) category that should be
    7·1 answer
  • Which statement about demand is true?
    14·1 answer
  • Suppose two firms are in a game​ situation, and they each must decide on a strategy regarding whether to select a high price or
    10·1 answer
  • "Some​ companies, such as​ Heinz, can forecast revenues well using pure time series analysis​ (that is, by extrapolation of prio
    10·1 answer
  • How does social distancing and stay-at home measures change our buying behavior(s)?
    6·1 answer
  • External forces in the natural environment include A. the trend toward healthier lifestyles, which can shift spending toward exe
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!